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United States: Financial System Stability Assessment (IMF, 79 page read) Pre-pandemic, a rise in corporate leverage and the migration of risks to nonbank financial institutions, put the US financial system under greater strain. Nevertheless, results from the IMF’s stress test show that most investment funds would be able to meet severe redemptions.
Vulnerable growth in the Euro Area: Measuring the financial conditions (ECB, 27 page read) ECB finds the Composite Indicator of Systemic Stress (CISS) is the best measure for Europe.
Estimating nominal interest rate expectations: Overnight indexed swaps and the term structure (Journal of Banking and Finance, 55 page read) Describes model to correctly extract interest rate expectations from yield curve.